Bright prospects for the automotive aftermarket, parts makers' profits rise

Affected by the Lunar New Year holiday and fewer working days, Dongyang's February performance slipped compared with January. However, with aftermarket (AM) and original equipment manufacturing (OEM) business still brisk, consolidated revenue still held at the level of 1.562 billion yuan, up 24% year on year, and reached a new high for any February in its history.

Auto parts maker Dongyang's consolidated revenue in February was NT$1.562 billion, setting a record high for any February in its history.

Dongyang's consolidated revenue for the first two months was 3.305 billion yuan, up 17% year on year.

Dongyang said that in order to seize opportunities in the AM market and increase the range of products supplied, it will add one production plant for plastic products, and will also add one automated fender production line for sheet metal products. Completion is expected by the end of May, which will add a monthly production capacity of 60,000 pieces.

Dongyang pointed out that automobile sales in mainland China grew 13.9% last year, and are expected to grow by more than 10% again this year. Xiangyang Dongyang and Foshan Dongyang will begin production successively in the second and third quarters, which will help the mainland China plants' revenue and profit rise in tandem.